Levi Strauss & Co ( LEVI ) shares are trading higher in the premarket session on Thursday.

Levi Strauss reported first-quarter earnings of 26 cents per share, which beat the analyst consensus estimate of 21 cents by 23.81%.

Read More: Levi Strauss & Co Reports Better-Than-Expected Q1 Results, Raises FY24 Guidance

Operating margin of (0.03)% in the quarter under review was down from 9.3% in the year-ago period due to the restructuring charges taken in the current quarter related to cost savings initiative, Project Fuel.

Restructuring charges were $116 million related to Project Fuel consisting primarily of severance and post-employment benefit charges.

Adjusted EBIT margin declined 200 basis points to 9.0% from 11.0% last year on a reported basis due to lower net revenues. Quarterly sales came in at $1.558 billion, down 7.76%.

Yesterday, the company declared a dividend of $0.12 per share, totaling approximately $48 million. The dividend is payable in cash on May 23, 2024.

Cash and cash equivalents were $517 million, while total liquidity was approximately $1.5 billion.

Levi Strauss reported total inventories decreased 14% on a dollar basis as of Feb. 25, and direct-to-consumer net revenues increased 7% on a reported basis.

The company raised its fiscal year 2024 adjusted earnings per share guidance from $1.15 and $1.25 per share to $1.17 and $1.27 per share.

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Price Action: LEVI shares are trading higher by 13.7% to $21.21 premarket on the last check Thursday.